Complectus LTD – Experts in providing value enhancing insurance propositions and specialist claims management to brokers and intermediaries

Forearmed is Forewarned. How Car Dealers can Anticipate FCA Investigation Outcomes into Add-On Insurance

Complectus LTD — Tue, 14 Jan 2014 11:41:39 +0000

With the impending FCA investigation into add-on insurance products we take a look at ways in which dealers can anticipate the potential changes that may impact on their current insurance selling models and use this time as an opportunity to look at ways they can maintain and strengthen their insurance business. Wider Product Portfolios We know that the FCA will be looking at the profits of add-on products and the way they are sold so one of the first things for dealers to consider is widening their range of insurance products and accurately matching products to the customer’s needs. Not only does this offer great opportunities for dealers to increase sales, they could also avoid potential issues around commission related incentives by offering one particular product over another. This gives the customer choice and it will offer protection to suit their needs. Partnership Approach Suppliers should already be working with their dealer partners redefining a new approach to the promotion of insurance products with the FCA and TCF in mind. Regardless of the outcomes of the FCA market study, it is essential that suppliers and dealers work together to understand the customer base and it’s crucial that the insurance products are aligned with the stock profile. Promoting Insurance Products Online With almost all of the used-car buying process carried out online with pre-purchase searches, one of the key challenges facing dealers will be how they can promote GAP Insurance, Lease Guard Protection and other insurance add-on products ahead of the point-of-sale. Used car buyers now make very few visits to dealerships during their search for their next car but when they do attend to make the purchase, dealers must be mindful of the risks of overwhelming customers with information and add-on choice. Therefore, dealers should be considering ways to inform and educate the customer prior to them visiting the showroom through innovative, online methods. Online tools will assist dealerships with the management of their insurance offering and enhance the customer journey during the car buying process. The right integration of these products online will mean they will become core product rather than just an add-on. For more information or advice on developing your portfolio of automotive insurance add-ons’ or stand alone products contact us

Protecting You and Your Car in the Winter

Complectus LTD — Fri, 04 Oct 2013 10:33:16 +0000

With the winter months looming they will bring increased rain, wind and icy spells which can play havoc on the roads and with our cars bringing unwanted stress, inconvenience and sometimes significant financial outlay. Motor breakdowns increase significantly over the winter period, peaking in January. Motor Breakdown Insurance can add value to a motor insurance policy or be sold on a stand-alone basis offering your customers’ peace of mind should they breakdown on the roadside. We’ve devised a checklist for your customers that can help them prepare for wintry conditions and help reduce the chances of a motor breakdown.but also be prepared should the worst happen. Check your car Check Antifreeze regularly and check concentration to be sure you have sufficient cold temperature protection. A flat Battery is the most common cause of winter breakdowns. Get batteries checked and replaced if necessary. Batteries that are more than five years old may struggle in the cold To avoid running out of petrol try and keep at least a quarter of a tank of Fuel in a tank in case of unexpected delay. Regularly check Lights are clean so you can see and be seen. It is advisable to also carry spare bulbs For winter motoring it is recommended that Tyres have at least 3mm of tread and that you check tyre pressures every two weeks. Windscreen – reduce dazzle from the low sun by keeping the screen clean inside and out. Now is a good time to renew worn wiper blades. Screen wash – use a 50% mix of a good quality screen wash to reduce the chance of freezing in frosty weather. Locks and door seals – stop doors freezing shut with a thin coat of polish or Vaseline on rubber door seals. A squirt of water dispersant (WD-40) in locks will help stop them freezing. Protecting you and your car in the winter 4th October 2013 With the winter months looming they will bring increased rain, wind and icy spells which can play havoc on the roads and with our cars bringing unwanted stress, inconvenience and sometimes significant financial outlay. Motor breakdowns increase significantly over the winter period, peaking in January. Motor Breakdown Insurance can add value to a motor insurance policy or be sold on a stand-alone basis offering your customers’ peace of mind should they breakdown on the roadside. We’ve devised a checklist for your customers that can help them prepare for wintry conditions and help reduce the chances of a motor breakdown.but also be prepared should the worst happen. Check your car Check Antifreeze regularly and check concentration to be sure you have sufficient cold temperature protection. A flat Battery is the most common cause of winter breakdowns. Get batteries checked and replaced if necessary. Batteries that are more than five years old may struggle in the cold To avoid running out of petrol try and keep at least a quarter of a tank of Fuel in a tank in case of unexpected delay. Regularly check Lights are clean so you can see and be seen. It is advisable to also carry spare bulbs For winter motoring it is recommended that Tyres have at least 3mm of tread and that you check tyre pressures every two weeks. Windscreen – reduce dazzle from the low sun by keeping the screen clean inside and out. Now is a good time to renew worn wiper blades. Screen wash – use a 50% mix of a good quality screen wash to reduce the chance of freezing in frosty weather. Locks and door seals – stop doors freezing shut with a thin coat of polish or Vaseline on rubber door seals. A squirt of water dispersant (WD-40) in locks will help stop them freezing. Check your motor breakdown insurance policy is up-to-date You may have purchased motor breakdown insurance directly or it may be included as part of your main motor insurance policy, car aftercare package, bank account or credit card. If you have switched insurer check whether it is still included by reading your policy wording or double check if your policy is still offered as a benefit via another product or service. Make sure you have access to the 24/7 emergency helpline for the motor breakdown provider or even better save the details in your mobile phone. Ensure the policy you have purchased is active and still offers sufficient cover for your current driving habits. Motor breakdown normally runs for a 12 months period and there are usually four levels of cover available for vehicle, personal or family cover. Typical levels of cover might include: Roadside Assistance We will arrange for a vehicle rescue operator to spend up to one hour to try to fix the car if it breaks down If it cannot be fixed we will arrange for the vehicle to be taken to a local garage to be repaired at the policyholders cost Home Recovery Assistance Should a policyholder breakdown at or within one mile radius of their home we will arrange for a vehicle rescue operator to spend up to one hour to try to fix it. If it cannot be fixed we will arrange for the vehicle to be taken to a local garage to be repaired at the policyholders cost UK Nationwide Recovery If the policyholder’s vehicle cannot be repaired at the roadside or at a local garage the same day we will arrange one of the following: For the vehicle, driver and up to 6 passengers to be taken to the policyholders destination or home Bed and breakfast accommodation for one night Hire of another vehicle Emergency driver European Assistance Should a break down occur whilst the policyholder is in Europe (including the UK part of their journey) we will arrange for a vehicle rescue operator to spend up to one hour to try to fix it. If it cannot be fixed we will arrange for the vehicle to be taken to a garage to be repaired at the policyholder’s cost. For more information about offering motor breakdown insurance scheme as an add-on or stand alone insurance product please contact us.

Broker Regulator FCA Confirms Market Study of General Insurance Add-Ons

Complectus LTD — Wed, 10 Jul 2013 09:55:24 +0000

The FCA (Financial Conduct Authority) is carrying out a market study into how general insurance add-on products are sold and whether competition is effective in these markets. When buying these products it is important that consumers are made aware of their options so they can make an informed decision about whether the cover meets their needs. Insurance add-ons are normally sold on the back of a main insurance policy such as a car or home insurance policy. The specific types of add-on insurance being reviewed are guaranteed asset protection (GAP) insurance, home emergency insurance, mobile phone & gadget insurance, travel and personal accident and accident cash plans, which the FCA considers are a good representation of the market. The investigation will be looking at whether the products are priced correctly and sold in an appropriate way. They will also review sales processes or interactions that may lead to poor outcomes for consumers and also whether consumers shop around for add-on insurance products. The study will look at whether there are common features of the add-on market that weaken competition and leave consumers worse off. It will take into account how firms and consumers behave and how they interact to shape prices and the quality and take-up of the products. Firms (including consumer organisations) and consumers have been asked to comment by 10 September 2013. The FCA is expected to publish their report next year.

Industry Concern for Damage Recharges

Complectus LTD — Mon, 14 Jan 2013 10:47:35 +0000

Latest industry news released today suggests leasing companies are being encouraged to ‘check and challenge’ damage recharges as concerns rise about differing standards and costs among leasing suppliers. There appears to be significant variances in charges between leasing companies, damage assessments at handover and the actual invoice being received. There are strict guidelines set out by the British Vehicle Rental and Leasing Association’s Fair Wear and Tear Guide, which reputable leasing companies to adhere. However, it would appear that industry charges are being increasingly being challenged and remain a grey area. Leasing companies challenged to reduce charges There are varying schools of thought in terms of how this issue should be tackled. One approach, according to Damian James, chairman of the fleet operators’ association ACFO and head of operations at Bracknell Forest Council, challenging the leasing company with the vehicle inspection report he has been able to reduce charges by over 50%. Negotiate charge waivers before agreeing contracts Fleet management specialist Fleet Logistics oversees 120,000 vehicles across Europe, and they urge companies to tackle a lack of uniformity in charges when they first agree contracts with suppliers. Outside the BVRLA’s fair wear and tear agreement, there is no mechanism for gauging whether leasing companies’ end-of-contract charges are justifiable or reasonable. Charges could be incurred for anything from a missing set of spare keys, an absent stamp in a service book, or the size of a scratch or dent. That is why it is so important for companies to check and challenge any charges that look unreasonable, excessive or inappropriate and negotiate with the leasing company. Can Less Stringent Assessments Save money? Yes, according to Ogilvie Fleet operations director Jim Hannah. Its’ policy starts at the outset of a contract, when it agrees a standard charge for different types. The charges reflect the cost of returning a vehicle to BVRLA ‘fair wear and tear standards’. For cars, they are £75 for a door panel, front wings and rear quarter panels; £120 for a bonnet, boot lid, tailgate, bumper, roof or van sliding door. With a less stringent attitude towards assessing vehicle damage, the company estimates it saves hundreds of thousands of pounds a year on inspection costs, which can instead be used to support the low recharge scheme. Is the introduction of a national standard for damage a solution? According to industry experts, attempting to introduce a national standard for all vehicle damage would prove unworkable. After years of discussion, the sheer complexity of implementing a national standard and the widely varying opinions on what constitutes a ‘standard level’ have proved insurmountable obstacles. There are hundreds of inspection types being delivered by a variety of organisations, each with a slightly differing approach. Some suppliers have millions of prices in their catalogue just for replacement parts alone. The cost structure also depends on what the aim of the repair is, for example for wholesale remarketing, retail sale or covering loss against residual value. It seems unlikely that a standard menu pricing for recharges for end of contract damage could be agreed upon that the whole industry would abide by. Can Lease Guard Refurbishment Insurance mitigate the risks of recharges? Lease Guard Refurbishment Insurance is a solution that has been designed to smooth out the end of lease process by covering the risk of recharges for refurbishment work. With average recharges often in excess of £300, and concerns around varying recharging policies by finance companies, Lease Guard fixes your cost at the contract start. Lease Guard Insurance will cover the cost of repairs to scuffs, chips, and small dents that are normally not worth claiming for, and can be fixed using ‘smart repair’ techniques. A Lease Guard Refurbishment Insurance policy will arrange and pay up to £500 for the policyholders vehicle to be refurbished up to BVRLA Fair Wear and Tear standards and policyholders can be reassured that all inspections are carried out by BVRLA accredited inspectors Click here to read more about Lease Guard Refurbishment Insurance